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A compulsory liquidation is the result of a winding up petition being issued at court against the business, usually where the business is unable to repay its debt. If the petition is issued your company could be in serious difficulty and you must seek professional advice immediately, speak to a member of our insolvency team on 01616 966 229.
The consequences of a winding up petition being and advertised are your business being unable to trade, as it is common for banks to freeze bank accounts and suppliers to restrict credit terms or demand early repayment of outstanding debts. If the winding up petition is successful an insolvency practitioner is appointed as liquidator and trading should immediately cease. The liquidator assumes full responsibility of the business and any assets which can be sold to raise funds and pay off your creditors.
Our corporate insolvency lawyers are highly skilled in advising businesses experiencing financial pressure and it is never too late to seek help. Our team can identify a range of recovery solutions reducing the risk of insolvency and preventing creditors taking legal action against your business, call us on 01616 966 229 or complete an online enquiry form and we will contact you directly.
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